The purpose of this research project is to examine the potential impact of the wheeling arrangements on Taiwan Power Company and to make relevant recommendations and to suggest sound strategies for Taipower to cope with the oncoming of the wheeling of electricity. In order to achieve this objective, we first investigated the basic orientation about the wheeling indicated in the various versions of the Electricity Act Amendments in terms of the socio-economic conditions in Taiwan. Then, we visited and consulted relevant power industry of advanced countries such as U.K., New Zealand, Australia and USA to identify the key issues and problems of the deregulation of the transmission and distribution sectors.